American Express (NYSE: AXP) reported Thursday that its profit jumped in its fiscal fourth quarter, citing a drop in loan rates and an increase in spending by cardmembers, according to Associated Press.
The credit card company earned $716 million in the quarter, or 60 cents per share, up from $240 million, or 21 cents per share, in the same period a year ago.
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On an adjusted basis, excluding discontinued operations, the company earned 59 cents per share, which topped analysts' estimates of 57 cents, according to Thomson Reuters.
The gain broke a streak of eight consecutive quarters of falling profits for AmEx.
Revenue edged lower to $6.49 billion from $6.51 billion last year. However, provisions for loan losses dropped 47 percent to $748 milion, from $1.4 billion a year ago.
Average spending by basic cardmembers rose to $3,209, up from $2,792 the same time last year. Average fees per card was $39, up from $34 last year.
The results for the fourth quarter of 2008 were also negatively affected due to a $273 million charge, primarily related to severance costs.
The company earned $1.54 per share for the full year, just missing analysts' forecast of $1.55 per share. The company earned $2.32 per share in 2008.
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